Spain to request European bank aid on Saturday
CNBC is reporting that Spain is expected to request aid for its failing banks during the weekend with the hope that it can forestall worsening market turmoil. Spain will be the fourth European country to seek assistance since the debt crisis began and the largest. A conference call will be held on Saturday by 17 finance ministers to discuss the Spanish aid package. A statement will be issued after the meeting.
Chinese economic data impacts markets
Market volatility is anticipated on Friday due to anticipated information from China. Chinese economic data will not be released until over the weekend when the markets are closed, however, due to the recent interest rate cut by the Chinese, experts predict that the news may indicate their economy is contracting, according to CNBC.
Bernanke infers no new steps by Fed to aid economy
In his testimony to a congressional panel on Wednesday, Ben Bernanke, head of the Federal Reserve, sent no signals that the Fed will take further steps to aid the economy, according to the Associated Press. Bernanke acknowledged the European debt crisis and higher unemployment posed some risk to the US economy but indicated the Fed had not yet fully analyzed the data. The Fed meets later in June, but at this point, Bernanke seems to be indicating no new actions will be taken. Pundits believe that Bernanke is holding back on actions due to the election in the fall. The Dow rallied early in the day on Thursday but fell back after Bernanke’s comments. It still closed up 46 points at 12, 460. Both Asian and European markets are negative on Friday.
Jobless claims fall for first time since April
The Labor Department released its weekly jobs report and the number of individuals filing for jobless benefits fell last week for the first time since April, according to Reuters. Claims dropped by 12,000 to a seasonally adjusted 377,000. The unemployment rate increased to 8.2 percent in May.
Fitch to cut US credit rating in 2013 if no credible deficit plan in place
Reuters is reporting that Fitch Ratings said on Thursday it would cut the US credit rating next year if Washington cannot create a credible fiscal plan. It also said it will immediately cut the credit ratings of Cyprus, Ireland, Italy, Spain and Portugal if Greece exits the Eurozone. Fitch said that the US is the only AAA rated country without a credible fiscal plan and the debt to GDP ratio is expected to increase over the medium term.
United reaches tentative agreement with flight attendants
United Airlines has reached a tentative agreement with the Continental Airlines flight attendants to extend their contracts for 28 months. Reuters reports that the union will vote in the next few weeks.
Coke says obesity grew as sugary drink consumption fell
In contradiction to Mayor Bloomberg’s ban on large sugary drinks in NYC, Coca-Cola, the world’s largest soft drink provider, claims that while childhood obesity was rising (1999-2010), the sugar in the beverages was actually decreasing. Sugars from soda consumption fell 39 percent while the number of obese kids grew 13 percent and the number of obese adults grew 7 percent. While Coke agrees that childhood obesity is a serious problem, Coke indicates it introduced 20 new low calorie drinks in 2011
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.